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American Recovery and Investment Act of 2009

  The American Recovery and Investment Act of 2009, commonly known as the Obama stimulus package, as removed the $4,000 credit caps on the residential and business tax credits passed by Congress last October.  So, homeowners and businesses can now receive a full 30% federal tax credit when installing a PlanetTurbine wind turbine.  The new tax credit will be available through 2016.  The stimulus bill also included attractive provisions to allow full use of both federal and state incentives, bonus depreciation, AMT relief, and DOE rebates in lieu of tax credits for businesses.

  This is a tax credit, not a deduction, so they will directly reduce the buyer’s federal tax payment. 

  For small wind systems installed in 2008 the residential tax credit is 30% of the total installed cost, up to the lesser of $4,000 or $1,000/kW.  The business tax credit is 30% up to $4,000. 

  The IRS form and instructions are available at http://www.irs.gov/pub/irs-pdf/f5695.pdf

  This is the first federal tax credit for small wind since 1985.  It is a major milestone for the small wind industry.  Our thanks go out to the American Wind Energy Association for its critical assistance.